● “This is also related to the strength of our government and as I always say, there’s a strong people in Mexico, that is the strength of our country,” the President emphasized.”
● President Sheinbaum’s strategy worked and today Mexico has a better deal than 185 countries, Minister of Economy Marcelo Ebrard noted.
President Claudia Sheinbaum emphasized that Mexico is respected by the United States and the entire world. This can be attributed to her administration maintaining a relationship of respect, coordination, and collaboration that allows Mexico to have a preferential status in relation to other nations. Therefore, the dialogue between the two countries will continue.
“Today it is very important to point out that Mexico is respected by the United States and by the entire world. And this relationship of respect that we have managed to build with President Trump, which is related to the frank dialogue of collaboration and coordination, and of respect, has allowed us today to have a preferential status in relation to other countries,” Sheinbaum explained in the morning presidential press conference known as the ‘mañanera’.
She noted that the good relationship with the United States has allowed Mexico not to be charged the additional tariffs announced yesterday, April 2, by U.S. President Donald Trump. She also attributed this to there not being a division between the people and government.
“In the case of Mexico there will be no additional tariffs, as is the case with Canada. However, in the case of Canada the situation is undergoing some revisions and that is good for the country. Even though there are some do not want to recognize it, this has to do with the good relationship we have built between the Government of Mexico and the Government of the United States, which is based on respect, respect for our sovereignty, collaboration, coordination, but with respect for Mexico, for Mexicans, and for national sovereignty, and this has enabled Mexico not to have to face additional tariffs.
“And this also has to do with the strength of our government. As I always say; there’s a strong people in Mexico, that is the strength of our country, this is why there is no division between the people and the government,” she explained.
In this regard, President Sheinbaum pointed out that the Mexican Government will continue to collaborate and coordinate with the United States, particularly in security and immigration question, within the framework of respect for the sovereignty of both nations.
“It is up to us to promote the economic development of the country, to maintain a relationship of respect with all the countries of the world. And based on these considerations, we have achieved this preferential treatment with the government of the United States. This has been a relation based on respectful treatment and permanent communication and dialogue, permanent, that is what we’ve always put on the table,” she explained.
The President reported that, according to what was issued yesterday by the White House, the agreement reached with President Trump on March 6 was respected, in which the products contemplated within the treaty between Mexico, the United States and Canada (USMCA) enter the U.S. market tariff-free.
“In connection with the treaty between Mexico, the United States, and Canada, the goods contemplated in the agreement continue to be eligible to enter the U.S. market under these preferential terms. However, all goods from Canada or Mexico that do not qualify as complying with rules of origin under the USMCA will now be subject to ad valorem, additional 25 percent tariffs,” according to the text.
Given this panorama, she pointed out that companies that wish to export without paying tariffs must adhere to the USMCA clauses, which contemplate a certificate of origin, which means that the products or their content must be mostly produced in Mexico.
She explained that it was also stipulated that in the event that the executive orders related to fentanyl and immigration are rescinded, products not contemplated in the USMCA will be subject to a tariff of 12 percent and not the announced 25 percent.
“’In the event that the existing IEEPA (International Emergency Economic Powers Act of 1997) fentanyl and migration orders are rescinded, USMCA compatible goods will continue to receive preferential treatment, while non-USMCA compatible goods would be subject to a reciprocal tariff of 12 percent. In other words, if it is USMCA, it’s zero percent; if it’s not USMCA and conditions are improved in relation to fentanyl, in the case of ‘most favored nation’, they would be reduced from 25 to 12 percent,” she pointed out.
In relation to the tariffs imposed on the automotive industry, steel and aluminum, the President announced that conversations with the United States will continue so that Mexico can achieve better conditions, since there is tremendous integration of the automotive companies located in both countries.
“What was issued for Mexico and Canada: ‘For automobiles qualifying for preferential tariff treatment under the USMCA, importers of such automobiles may submit documentation to the Secretary of Commerce that specifies the amount of U.S. content in each model imported into the United States.’ In other words, what they are saying is that the part that was manufactured in the United States will be discounted,” she explained in reference to the executive order issued by the U.S. President on March 26.
President Sheinbaum emphasized that in addition to continuing with the dialogue with the United States, Plan Mexico will also be accelerated to strengthen the national economy.
“We have a plan. So, the plan to strengthen the national economy and the wellbeing of the people of Mexico is a plan that we have been developing and it has to do with Plan Mexico. In any case, we are going to accelerate many of the actions of Plan Mexico,” she said.
Minister of Economy Marcelo Ebrard Casaubon emphasized that President Claudia Sheinbaum’s negotiating strategy with the United States worked, so today Mexico has preferential treatment unlike what occurred with other economies worldwide.
“This is the reality we’re in; we are going to consolidate this position. Our President is handling a strategy that deals with many issues at the same time in order to achieve these results, and maximize Mexico’s comparative advantages. This is a very important advantage today, because it makes it better to do things here than in other parts of the world,” he said.
Ebrard noted that the United States has trade agreements with 14 countries around the world and the only one to which no tariffs were applied was the USMCA, with this Mexico had a 0 percent tariff; the treaty is maintained and more than 10 million jobs that depend on the Treaty are protected, in addition to maintaining permanent dialogue with the US.
“This treatment we have achieved thanks to the President’s strategy. It is a great achievement, I would say this from the standpoint of when this all started, very recently, there was not going to be any exception,” he added.
Ebrard reported that the key sectors of the Mexican economy that avoided tariffs were agri-food; electronics; electrical goods; chemicals; clothing and footwear; medical devices and pharmaceuticals; machinery and equipment.
The Minister of Economy pointed out that in terms of tariffs on the automotive industry, steel and aluminum, the goal is to achieve better conditions than the rest of the countries in the next 40 days.
Related: Sheinbaum gains support amid tensions with Washington; approval rating at 82%
Mexican Press Agency is part of ALMA, which is dedicated to news and information about Mexico and Mexicans in the United States and is a fiscally sponsored project of Social Focus, a 501(c)(3) nonprofit organization based in Redwood City, California.
